Defaulted loans in Bangladesh’s banking sector declined to around 31% at the end of December 2025, down from a historic high of nearly 36% three months earlier, following large-scale loan rescheduling under a special policy support introduced by the central bank, reports Daily Sun.
According to the latest data from Bangladesh Bank, total non-performing loans (NPLs) stood at Tk5,57,217 crore at the end of December, compared with Tk6,44,515 crore at the end of September. The volume of bad loans dropped by Tk87,298 crore within a single quarter.
Bankers attributed the sharp decline to widespread rescheduling and restructuring of loans under relaxed terms aimed at supporting businesses affected by macroeconomic stress and political instability.
Special policy support for businesses
In January last year, Bangladesh Bank formed a five-member committee to provide policy backing for restructuring corporate borrowers struggling amid economic volatility. On September 16, the central bank introduced a unified special rescheduling policy to sustain economic activity and assist borrowers who defaulted due to circumstances beyond their control.
Under the policy, borrowers were allowed to regularise their loans for a tenure of up to 15 years, with some eligible to make a down payment of only 1% or 2% of the outstanding amount.
During the first nine months of last year, more than 300 companies — including large defaulter conglomerates — applied for rescheduling or restructuring facilities involving around Tk2 lakh crore.
Bank-wise NPL situation
Despite the overall decline, default rates remain elevated across different categories of banks.
At the end of December, state-owned banks recorded Tk1,46,107.59 crore in non-performing loans, accounting for 44.44% of their total disbursed loans.
Private commercial banks held Tk3,89,579 crore in bad loans, equivalent to 28.25% of their outstanding credit.
Foreign banks reported Tk2,983.77 crore in non-performing loans, representing 4.51 %, while specialised banks posted Tk18,546.47 crore in defaulted loans, or 39.74% of their total disbursements.
Bd-Pratidin English/ AM
